Auto Insurance Forum: Demystifying Auto Insurance — A year-end recap and key takeaways for New Yorkers
By Shannon L. Malone, Esq.
Over the course of the year, we at Glynn Mercep Purcell and Morrison LLP., have sought to inform our neighbors in the community of important automobile insurance topics through our Auto Insurance Forum column. To summarize the many insurance issues discussed in our articles and to help the reader understand some key takeaways, we suggest keeping the information below in a safe place so that you may reference it in the future.
Insurance Policy Minimums under New York State Law: $25,000 per person/$50,000 per accident in Bodily Injury coverage; $25,000 per person/$50,000 per accident in Supplemental Underinsured Motorist (SUM) coverage; $50,000 in Personal Injury Protection coverage; $25,000 per person/$50,000 per accident in Uninsured/Underinsured Motorist coverage
The Importance of Adequate SUM Coverage: As discussed, SUM coverage is mandated in New York for the amount indicated above. Having adequate SUM coverage is vital to ensure fair compensation when injured by an under-insured driver as your own policy pays the gap between their liability and your claim.
Understanding the Motor Vehicle Accident Indemnification Corporation (MVAIC): In New York, “No Fault” insurance (Personal Injury Protection or PIP) covers accident-related costs, regardless of fault. Drivers need a minimum liability policy of $25,000.
When hit by an uninsured driver or involved in a hit-and-run as a pedestrian, cyclist, or motorcyclist without your own insurance, the Motor Vehicle Accident Indemnification Corporation (MVAIC) steps in. MVAIC is a non-profit organization providing up to $50,000 in no-fault benefits for medical bills and $25,000 per person for injury compensation.
It’s funded by insurance company levies, fees, investments, and recoveries. To qualify, the accident must be reported to the police within 24 hours, the accident must have occurred in New York, and no other insurance is available. You cannot own or be the spouse of the uninsured vehicle’s owner. For hit-and-runs, file a Notice of Intention within 90 days (180 days if the owner is identified). Complete an NF-2 form with accident and injury details, medical bills, and a Household Affidavit. Consult a lawyer for help navigating this process.
Understanding New York’s No-Fault Insurance Law: New York State Insurance Law § 5102(d) governs the criteria which allows you to make a claim or file a lawsuit when you are injured as a result of a motor vehicle accident.
The section defines the criteria necessary to receive compensation (i.e., a serious injury) as: ”a personal injury which results in (1) death; (2) dismemberment; (3) significant disfigurement; (4) a fracture; (5) loss of a fetus; (6) permanent loss of use of a body organ, member, function or system; (7) permanent consequential limitation of use of a body organ or member; (8) significant limitation of use of a body function or system; (9) or a medically determined injury or impairment of a non-permanent nature which prevents the injured person from performing substantially all of the material acts which constitute such person’s usual and customary daily activities for not less than ninety days during the one hundred eighty days immediately following the occurrence of the injury or impairment.”
Remember Insurance Companies are in Business to Make Money: Insurance companies aim to minimize payouts to maximize profits. They investigate claims, including personal background and online presence. Communicate factually with insurance adjusters but avoid volunteering information. Many companies use actuarial software to calculate low initial settlement offers. Negotiate to increase your claim’s value by considering all medical expenses, additional accident-related costs, and long-term consequences of your injuries.
On behalf of Glynn Mercep Purcell and Morrison LLP., we wish you a Happy Thanksgiving!
Shannon L. Malone, Esq. is an Associate Attorney at Glynn Mercep Purcell and Morrison LLP in Setauket. She graduated from Touro Law, where she wrote and served as an editor of the Touro Law Review. Ms. Malone is a proud Stony Brook University alumna.
